This bill extends consumer protection rules to the "buy now, pay later" (BNPL) lending industry, which currently operates with minimal federal oversight. Specifically, it amends the Truth in Lending Act to define BNPL loans as closed-end consumer loans repaid in up to four interest-free installments, then applies existing credit card protections to BNPL transactions—including disclosure requirements, dispute resolution procedures, and protections against fraud and defective merchandise. The bill also brings BNPL lenders under direct federal supervision by the Consumer Financial Protection Bureau, similar to other credit providers. The Consumer Financial Protection Bureau has one year from enactment to issue detailed rules implementing these protections. This legislation affects millions of consumers who use BNPL services and the growing number of fintech companies offering these loans, but involves no direct federal spending or appropriations.
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